National surety for companies increases fivefold


From 15 April, new terms and conditions of KredEx loan surety for companies will enter into force, according to which the loan surety limit will increase fivefold to 25 (twenty-five) million euros.

Kaarel Aus
Kaarel Aus

"Entrepreneurs' business growth projects can often struggle to secure bank financing because their collateral is insufficient or their value is difficult to assess," explained Kaarel Aus, Head of the Guarantees and Loans Department of the Joint Agency of EAS and KredEx. “Until now, KredEx could grant surety to entrepreneurs up to a limit of five million euros. By raising the limit of loan surety, we will be able to support the availability of bank loans for significantly more ambitious projects in the future.”

The previous maximum loan surety limit of five (5) million euros is now twenty-five (25) million euros. "In 2023, we will pilot the surety for large transactions monitoring relevant applications and the needs of entrepreneurs, and if our terms of service prove to be too restrictive for some important projects, we will review them," said Aus. He added that work will also continue with a number of reinsurers and the European Commission in order to further increase the loan surety limits in the future.

Projects that are sustainable and aim to improve digitalisation, energy and resource efficiency will receive a larger surety.

Ruth Oltjer, Chairwoman of the Board of Chemi-Pharm, said the decision to raise the ceiling for state loan surety to 25 (twenty-five) million euros will help to boost companies. "This will allow them to attract large foreign investments, create new jobs, increase export capability, grow the Estonian economy as a whole and to realise dreams that have been unachievable so far," said Oltjer.

To apply for the loan surety, companies should contact their home bank.

Find more information about our surety service here. The new terms and conditions will enter into force on 15 April.